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Friday, October 6, 2017

General Motors (GM) the GOOD, BAD, AND UGLY!

I've been talking about GM on this blog because of its really big dividend yield. The company has been undervalued to the market for some time now! I also mentioned multiple times on twitter and my youtube channel! Well the market finally caught up to value and price is adjusting to reflect reality.

I named this the Good, Bad, and Ugly because from the first blog post General Motors Company (GM): A Big Dividend! With Tons of Upside!! I will tell you how I made good moves bad moves and the good results and ugly results. I have had core shares bought and held the whole time which I will call the good or very good up 52% see figure below. I was doing better until recently trading around a core position and using covered calls. So the good is the dividend and cover calls premium and a slow move up in stock price! The Bad isn't really all that bad as the market over a period of time has gone up and we have stayed with it. The Ugly is when you write a covered call and a stock makes a big move and you lose upside. This happen once when we had a covered call at $35 and now at $40. The first time it did give us a chance to buy under the $35 mark and it may do it again but right now I think we are getting to a peak.
Summary
Good core position up 52%
Bad overall position up $28% (includes divy) in-line with market
Ugly my covered calls ended up costing 14%

Chart from www.dividendchannel.com via TickerTech.com

So did you follow me and buy GM? Let me know your thoughts below and always look at my Stocksnowball portfolio tab to see stocks I like!

I would be hesitant to add new money in GM.
I am still long GM!

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